Baddock told drinks trade magazine that Pinnacle is effectively a supplier embedded in the Woolworths Liquor business and that there are two reasons for its existence.
"One of the reasons is entry-level brands. Every retailer has them and customers want them, so we need to compete. We call our value brands our anchor brands - the brands that we know we need in order to compete, but I wouldn’t say these are our core brands," he said.
"Our core brands can be both owned brands – such as Minchinbury and John Boston - and the brands we develop or distribute with suppliers, and this is the second reason why we exist. It’s to drive brands which over-deliver for customers and, in turn, create loyalty to the retail banners."
Baddock said that Pinnacle's strategy begins with ascertaining what each individual category's needs are.
"Pinnacle then supplies into Dan Murphy’s, BWS and The Wine Quarter with the brands that it believes meets those needs," he said.
"But there is no guarantee the products we source will be ranged. Because at the end of the day, the buyers, business managers and the heads of the categories have the final say on what the category make-up is."
Baddock gave an open invitation for all suppliers to have a conversation with Pinnacle about how the division can bring their brands to life.
"I’ll never say that we get it right every time - that’s the risk in creating a brand - but we will always work together closely with our suppliers to deliver the right outcome for all parties, with a focus on the customer," he said.
"Quite often once we’ve explained to suppliers why we do what we do, they become excited and we are able to engage in a more fulsome conversation."
For the full interview with Chris Baddock, see the upcoming April/May issue of drinks trade magazine.
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